(a) In addressing public school districts in fiscal distress, the Commissioner of Elementary and Secondary Education may:

1. (1) Remove permanently, reassign, or suspend on a temporary basis the superintendent of the school district and:

   1. (A) Appoint an individual in place of the superintendent to administratively operate the school district under the supervision and approval of the Commissioner of Elementary and Secondary Education;
   2. (B) Compensate nondivision agents operating the school district from school district funding; and
   3. (C) Authorize an individual appointed under subdivision (a)(1)(A) of this section to remove, replace, reassign, or suspend public school district personnel in accordance with state law;
2. (2) Suspend or remove some or all of the current board of directors and call for the election of a new board of directors for the school district, in which case the school district shall reimburse the county board of election commissioners for election costs as otherwise recognized by law;

3. (3)

   1. (A) Suspend on a temporary basis some or all of the powers and duties granted to the current public school district board of directors under Arkansas Code § 6-13-620 or any other law but allow the board of directors to continue to operate under the direction and approval of the Commissioner of Elementary and Secondary Education.
   2. (B) The State Board of Education shall define the powers and duties of the board of directors while the board of directors is operating under the direction and approval of the Commissioner of Elementary and Secondary Education.
   3. (C) The public school district board of directors shall act in an advisory capacity to the Commissioner of Elementary and Secondary Education regarding all powers and duties granted under Arkansas Code § 6-13-620 that are not defined under subdivision (a)(3)(B) of this section;
4. (4) Require the school district to operate without a local school board of directors under the supervision of the local superintendent or an individual or panel appointed by the Commissioner of Elementary and Secondary Education;

5. (5) Waive the application of Arkansas law or the corresponding state board rules with the exception of:

   1. (A) Special education programs as provided in state and federal law;
   2. (B) Criminal background checks for employees as provided in state law; and
   3. (C) Health and safety codes as established by the state board and local governmental entities;
6. (6) Petition the state board for the annexation, consolidation, or reconstitution of the school district;
7. (7) In the absence of a school district board of directors, assume all authority of the board of directors as designated by the state board as may be necessary for operation of all school district systems;
8. (8) Require reassignment of some or all of the administrative, instructional, or support staff of a public school district;
9. (9) Require reorganization, closure, or dissolution of one (1) or more of the public schools within the public school district;

10. (10)

    1. (A) Return the administration of the school district to the former board of directors or to a newly elected board of directors if:

(b) (b) Public school district has not experienced any additional indicators of fiscal distress; and

1. (ii) The state board determines the school district has corrected all issues that caused the classification of fiscal distress.

   1. (B) If the Commissioner of Elementary and Secondary Education calls for an election of a new school district board of directors, the school district shall reimburse the county board of election commissioners for election costs as otherwise required by law;
2. (11) Otherwise reconstitute the school district; or
3. (12) Take any other action allowed by law that is deemed necessary to assist a school district in removing the classification of fiscal distress.

(b)

1. (1) The division may impose various reporting requirements on the school district.

2. (2) The division may review any and all school district records and documents.

   1. (c) The division shall monitor the fiscal operations and accounts of the school district.

      1. (d) The division shall require school district staff and employees to obtain fiscal instruction or training in areas of fiscal concern for the school district.